| Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, unless otherwise stated) | 2024 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 345 | $ | 276 | $ | 309 | Depreciation and amortization expense | 172 | 154 | 135 | Interest expense | 55 | 35 | 17 | Other (income) expense, net | (8) | (13) | 12 | Income tax expense | 70 | 70 | 74 | Stock-based compensation | 23 | — | — | Goodwill impairment | — | 37 | — | Restructuring | (1) | 4 | — | Adjusted EBITDA | $ | 656 | $ | 563 | $ | 547 | Revenue | $ | 2,870 | $ | 2,678 | $ | 2,520 | Net income margin | 12.0 | % | 10.3 | % | 12.3 | % | ||||||||||||||
| Adjusted EBITDA margin | 22.9 | % | 21.0 | % | 21.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | 2024 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating activities | Net income | $ | 345 | $ | 276 | $ | 309 | Adjustments to reconcile net income to net cash flows provided by operating activities: | Depreciation and amortization | 172 | 154 | 135 | Goodwill impairment | — | 37 | — | Gains on divestitures | (24) | (2) | — | Stock-based compensation | 23 | — | — | Losses on foreign exchange transactions | 11 | 4 | 18 | Losses (gains) on investments, net | 6 | (6) | (18) | Deferred income taxes | (6) | 11 | 10 | Pension settlement losses | — | — | 18 | Other, net | 14 | 11 | 8 | Changes in assets and liabilities, excluding the effects of acquisitions and divestitures: | Accounts receivable | (31) | 6 | (15) | Contract and other assets | 3 | (33) | (12) | Accounts payable | 13 | 1 | (18) | Accrued expenses | 7 | (28) | (85) | Pension and postretirement benefit plans | (9) | 4 | 19 | Contract and other liabilities | — | 32 | 3 | Net cash flows provided by operating activities | 524 | 467 | 372 | Investing activities | Capital expenditures | (237) | (215) | (164) | Acquisitions, net of cash acquired | (26) | (18) | (66) | Proceeds from divestitures | 29 | 4 | — | Sales of investments | — | 144 | 155 | Purchases of investments | — | (95) | (162) | Other investing activities, net | — | 5 | (1) | Net cash flows used in investing activities | (234) | (175) | (238) | Financing activities | Proceeds from long-term debt | 181 | 440 | 700 | Repayments of long-term debt | (346) | (30) | (200) | Dividends to stockholders of UL Solutions | (100) | (680) | (1,600) | Dividends to non-controlling interest | (15) | (14) | (13) | Other financing activities, net | (4) | (10) | (3) | Net cash flows used in financing activities | (284) | (294) | (1,116) | Effect of exchange rate changes on cash and cash equivalents | (23) | (5) | (24) | Net decrease in cash and cash equivalents | (17) | (7) | (1,006) | Cash and cash equivalents | Beginning of period | 315 | 322 | 1,328 | End of period | $ | 298 | $ | 315 | $ | 322 | Supplemental disclosures of cash flow information | Cash paid during the period for interest | $ | 57 | $ | 32 | $ | 17 | Cash paid during the period for income taxes | 66 | 57 | 68 | Cash paid during the period for stock-based compensation | 19 | 61 | 48 | Noncash investing and financing activities | Capital expenditures funded by liabilities | $ | 43 | $ | 46 | $ | 29 | Conversion of stock-based compensation awards to equity (Note 18) | 26 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | 2024 | 2023 | 2022 | ||||||||||||||||||||||||||||
| Certification Testing | $ | 784 | $ | 718 | $ | 657 | Ongoing Certification Services | 953 | 874 | 828 | Non-certification Testing and Other Services | 860 | 812 | 769 | Software | 273 | 274 | 266 | Total | $ | 2,870 | $ | 2,678 | $ | 2,520 | ||||||
| (in millions) | 2024 | 2023 | ||||||||||||||||||||||||||||||
| Land and land improvements | $ | 41 | $ | 42 | Building and building improvements | 451 | 364 | Leasehold improvements | 182 | 172 | Machinery, equipment and office furniture | 729 | 714 | Property, plant and equipment, gross | 1,403 | 1,292 | Total accumulated depreciation | (772) | (737) | Property, plant and equipment, net | $ | 631 | $ | 555 | ||||||||
| (in millions) | U.S. | Non U.S. | Total | |||||||||||||||||||||||||||||||
| 2025 | $ | 51 | $ | 5 | $ | 56 | 2026 | 31 | 5 | 36 | 2027 | 30 | 6 | 36 | 2028 | 29 | 6 | 35 | 2029 | 29 | 6 | 35 | Years 2030 through 2034 | 125 | 40 | 165 | ||||||||
